Introduction
The accounts are finalised and filed for Model Railway Magic Ltd’s company year from July 2024 to the end of June 2025. As in previous years, I think it’s worth sharing a few notes alongside the official reports to reflect on what we’ve been up to and how things are going.
I’ve kept similar headings as before for simplicity.
This period marks our third full year operating Train Trax and the first year of bringing The Model Tree Shop properly into the Model Railway Magic family. It’s been a year of growing into that bigger shape: serving more customers, looking after two established brands, and getting ready for our next big step – moving to new premises.
People
Customer satisfaction has remained high across both Train Trax and The Model Tree Shop, as shown by Trustpilot reviews, direct feedback and marketplace ratings. Packing quality, delivery speed and responsiveness continue to be the things customers mention most often, which is encouraging, as these are areas we work hard on. This ongoing focus on customer care sits neatly alongside our commitments under the Good Business Charter.
Bringing The Model Tree Shop into the business has been a big part of this year. I’m hugely grateful to Steve, who founded and built TMTS over many years. He has been generous with his time and knowledge throughout the transition – helping with product knowledge, supplier intros and all the practical detail that doesn’t show up on a balance sheet. That support has made it much easier to keep serving long-standing TMTS customers while we start to put our own stamp on the brand.
Our small team has continued to make a big difference:
- Jonathan has remained a steady presence, looking after stock, packing and photography with his usual attention to detail. His work behind the scenes continues to improve how both sites look and function.
- Keiren has developed his role across the second-hand and recycling side of the business, as well as handling Train Trax customer queries by phone and email. Many customers will have now met him in person at the shows we visit.
This year we kept to our intention of limiting show attendance to a manageable number, while still seeing the value of being “out in the wild”. Attending selected exhibitions has once again reminded me how helpful it is to put faces to names, answer questions in person and see the delight that a working layout can create across generations.
A personal note from this year: I was honoured to receive the University of York Enterprise Works “Inspirational Leader” award. Although it has my name on it, I see it very much as recognition of the work of the whole team and the wider community of customers, suppliers and supporters who have helped Model Railway Magic grow.
We also continued to benefit from local links with the Yorkshire Area Group of the N gauge society.
Profit
Turnover for the year increased again reflecting both the contribution from The Model Tree Shop and continued demand for Kato products through Train Trax. We didn’t quite meet our arbitary target of £500K. As you would expect with a bigger business, overheads also rose – especially stock, staffing and premises-related costs – but we are pleased that the company remained profitable overall.
As in previous years:
- Corporation Tax on profits will be paid in the UK.
- VAT payments to HMRC are fully up to date.
- All supplier bills were paid on time.
These are basic disciplines, but they matter, and they sit alongside our renewed commitment to the Good Business Charter.
We have continued to pay down debt, while also investing in stock for The Model Tree Shop and in preparations for our upcoming move. This means that although profit margins have been under pressure at times, the business as a whole is on a stronger footing for the future.
Planet
We have continued to work towards the goals in our environmental policy across all parts of the business:
- Ongoing contributions to Stripe Climate.
- Extensive use of recycled and re-used packaging where practical.
- Use of renewable energy for our web hosting.
With The Model Tree Shop now under the same umbrella, we’ve started to apply the same principles consistently across both brands.
Our model recycling programme – where Model Railway Magic began – has not received the attention it has deserved this year due to the other demands on our time. It still represents a relatively small percentage of overall turnover, but it remains an important part of our identity and our attempt to make the hobby a bit more circular.
Other notes
The year has been busy on several other fronts.
The Model Tree Shop integration
This has involved getting to grips with a very wide product range, learning from Steve’s experience, and gradually aligning systems and processes with the rest of the business. We’ve invested in additional stock, refreshed parts of the website and started to tell the TMTS story alongside that of Train Trax. There is still work to do, but early signs from customers have been positive.
Hex-TRAK
Hex-TRAK, launched in partnership with JSModels, has continued to gain traction. We’ve had interest and enquiries from outside the UK, and spent time during the year exploring how best to develop this modular system so that it remains accessible and fun while being robust enough for more serious layouts.
Premises and preparations for moving
A significant amount of energy this year has gone into planning our move to new premises. With both Train Trax and The Model Tree Shop growing, our existing space has been under increasing pressure.
During the year we:
- Reviewed a number of possible sites and layouts.
- Ran the numbers on rent, rates and fit-out costs.
- Began detailed planning for racking, packing areas, show stock storage and a more welcoming space for visitors.
By the end of the financial year we were close to finalising plans, with the actual move taking place in the following period. We’ll report back on how it’s been next year!
Not every experiment this year delivered a financial return, but each has taught us something about what works for a small, values-driven business in a niche hobby.
Looking ahead
The next year will be shaped by three main priorities:
- Successfully completing the move to new premises, minimising disruption for customers while setting ourselves up with a more efficient and pleasant working environment.
- Continuing to develop The Model Tree Shop, enhancing the range where it makes sense, tidying systems and making it easier for customers to find what they need.
- Growing Train Trax and Hex-TRAK steadily, keeping a close eye on stock levels, cash flow and marketing effectiveness.
We’ll keep looking for sensible opportunities to collaborate, whether that’s through new products, partnerships, exhibitions or the emerging visitor attraction idea. At the same time, we remain realistic about the constraints of our size and finances.
As before, we welcome enquiries about business opportunities and partnerships that build on our strengths in e-commerce, customer service and model railways.
Conclusion
I hope this summary gives a useful snapshot of the year from July 2024 to June 2025. It’s shared in the same spirit as previous reports: openness about what we’re doing, where things are going well, and where we’re still learning.
As sole shareholder and director, I still have the freedom to make my own mistakes and to embed my ethics and values into the business. I’m very aware that many customers, suppliers and other stakeholders have an interest in our success too, and I’m grateful for the trust and support you’ve shown during another year of change and growth.